@Adele Tegger the way I understand the law, it would not impact a mid term rental unless the person lives in the unit for longer that 12 months (ie they extend their stay to the point that they have occupied the property for more than 12 months).

@Gladys Villa tell us a better way to get started than buying a 2-4 unit property with an FHA mortgage, FHA 203(k) if it needs rehab, then living in one unit and renting out the rest.You can also rent out the other bedroom(s) in the unit you occupy for more income.After one year, you can repeat the process.

Would this be a flip, brrrr, traditional Rental, owner occupied?  

The 5% program is for owner occupied multi-unit properties -and I'm pretty sure it isn't intended for BRRRRs... but I don't know all the in's and outs of that.  

If vacancies come up, we work with leasing agents to keep the property occupied.

I’ll get a better interest rate on the property as compared to an investment property since it is an owner occupied conventional loan2.

SHRA (Sacramento housing) encourages landlords to rent to their clients and gives incentives for renting to the clients in the good neighborhoods (most owner occupied areas). 

In the 4th Quarter of 2023, Fannie Mae introduced a new product allowing for a 🤩 5% down payment on owner-occupied properties with up to 4 units.🔥 This can be a great way to start building passive income immediately.🤑 By purchasing a fourplex, living in one unit, and renting out the other three, you could effectively live for free while simultaneously building equity📈 and generating passive income.

I lease out a place occupied by an unmarried couple and a young child belonging to one of them. 

We both occupied one unit for 2 out of the last 5 years.